A N N U a L R E P O R T 2 0
Total Page:16
File Type:pdf, Size:1020Kb
ENTERPRISE INFORMATION MANAGEMENT OPENTEXT ANNUAL REPORT ANNUAL OPENTEXT 2013 THE POWER OF INFORMATION ANNUAL REPORT 2013 OpenText is a publicly traded company on both the NASDAQ (OTEX) and the TSX (OTC). Copyright © 2013 by Open Text Corporation. OpenText is a trademark of Open Text Corporation. This list is not exhaustive. All rights reserved. DEAR SHAREHOLDER, EXECUTIVE LEADERSHIP TEAM In Fiscal 2013 we delivered value and growth 1) Broader EIM Capabilities: Growth products are where Mark J. Barrenechea to our shareholders, with historical records in we are placing key innovation investments and go-to- PRESIDENT AND CHIEF EXECUTIVE OFFICER revenue of $1.4 billion1, up 13% year-over-year; market initiatives. These products include: (1) The EIM operating cash flow of $318.5 million2, up 20% Developer; (2) InfoFusion; (3) The Tempo Series; (4) Paul McFeeters year-over-year; and non-GAAP earnings per share Extended ECM for SAP® and Oracle®; (5) Archive in the CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER diluted of $5.573, up 21% year-over-year, all while Cloud and Content Server; (6) The Digital Enterprise with also demonstrating 6% organic license growth CEM and WEM 8.5; (7) Secure iX; and (8) BPM Assure. Gordon A. Davies in the second half of Fiscal 2013, over the same Release after release, the products become more and period the previous year. more integrated. Release after release, we continue to CHIEF LEGAL OFFICER AND CORPORATE SECRETARY introduce more cloud-based offerings. Other key accomplishments in the fiscal year Sujeet Kini included rewarding shareholders’ investments in 2) Expanded Distribution: Establishing new channels is CHIEF ACCOUNTING OFFICER OpenText by initiating a quarterly dividend program essential for our growth agenda. We are scaling our inside for the first time in our history. sales team (ISR), focusing on deepening key system Kevin Cochrane integrator (SI) partnerships, and establishing a top 5 Further, the strategic acquisition of EasyLink gave CHIEF MARKETING OFFICER value-added reseller (VAR) program in each country we OpenText the products and infrastructure to make do business in. Key partners remain a strategic initiative a pivotal move into cloud-based services. In our James McGourlay for us. Our relationship with SAP® is stronger than ever. first year, we delivered over US$170 million of SENIOR VICE PRESIDENT, WORLDWIDE CUSTOMER SERVICE Also, we are building on our relationship with Microsoft®, revenues in the OpenText Cloud. and we expect to add new key partners in Fiscal 2014. Gary Weiss On the product front, we made incredible progress Channels and partners are a force multiplier whereby we SENIOR VICE PRESIDENT, PORTFOLIO GROUP in each of the Enterprise Information Management can add thousands of new professionals invested in the (EIM) product pillars. Enterprise Content future of OpenText. James Mackey Management (ECM) became stronger with the 3) Expanded Presence in the Cloud: OpenText Cloud OpenText Tempo product series and, in the coming SENIOR VICE PRESIDENT, CORPORATE DEVELOPMENT Services offer a new revenue stream for us; not a swap of year, will strengthen with new products for the existing revenues. We can now ‘complete the need’ for our Walter Köhler Developer and Cloud-based archiving. Customer customers, whether that need is on premises (their place) Experience Management (CEM) became stronger SENIOR VICE PRESIDENT, WORLDWIDE PROFESSIONAL SERVICES or in the cloud (our place). with the launch of Web Experience Management Muhi Majzoub (WEM) 8.5 and Media Management 7.2, our 4) Fast Growing Markets: In Fiscal 2014, we look to establish innovative new solution for digital marketers to our brand, products and customer successes in these SENIOR VICE PRESIDENT, ENGINEERING drive customer engagement and revenue through markets. We define fast growing markets as Latin America, Manuel Sousa digital marketers’ personalized multichannel digital China, India, South East Asia (“SEA”), Japan, Africa, Middle experiences. The EasyLink acquisition combined East, Russia and the Commonwealth of Independent States, SENIOR VICE PRESIDENT, GLOBAL HUMAN RESOURCES with the expanded vision of Secure iX supports Central and Eastern Europe. Channels and partners are our leadership position in this pillar. The Business a force multiplier whereby we can add thousands of new Steve Best Process Management (BPM) pillar was bolstered professionals invested in the future of OpenText. SENIOR VICE PRESIDENT, NORTH AMERICAN SALES by the launch of BPM Assure. We established our Discovery pillar with our new InfoFusion offering OpenText is a proven acquirer and we will Simon Harrison which connects disparate information silos in continue to pursue acquisitions, where and when SENIOR VICE PRESIDENT, EMEA SALES the enterprise with rich semantic search and it makes strategic sense. This, in addition to the discovery. Our applications team advanced our growth opportunities listed above, give me great Graham Pullen SAP® products with SAP® Cloud for Travel and confidence in both the short-term and long-term SENIOR VICE PRESIDENT, APJ SALES support for HANA. success of the company. With our sales organization expanded and Thanks to the hard work and incredible trained and our leadership position established in contributions of our employees and partners, Fiscal Enterprise Information Management (EIM), we are 2013 has been a strong year, demonstrating both well positioned for success in Fiscal 2014. value and growth for our shareholders. With our proven ability to deliver solid financial results and In the coming year, our focus is on intelligent a new dividend program, we enter Fiscal 2014 with growth, a commitment to growing earnings, cash a focus on intelligent growth and value, with a plan flows and creating value for our stakeholders to execute against it. As I reflect on our business BOARD OF DIRECTORS while investing in the markets we know we can model and the exceptional talent within the win in. These investments include broader EIM organization, I’m excited about the opportunities capabilities, expanding our distribution both direct P. Thomas ‘Tom’ Jenkins, Chairman ahead of us and look forward to the coming year and through partners, expanding our presence with great anticipation and enthusiasm. Mark J. Barrenechea in the cloud and furthering our reach into fast growing markets. Randy Fowlie Brian J. Jackman Sincerely, Stephen J. Sadler Michael Slaunwhite Gail E. Hamilton Katharine B. Stevenson MARK J. BARRENECHEA, PRESIDENT AND CHIEF EXECUTIVE OFFICER Deborah Weinstein Certain statements in this letter, including statements about the focus of Open Text Corporation (“OpenText” or “the Company”) in Fiscal 2014 on growth in earnings and cash flows, creating value through investments in broader EIM capabilities, distribution, the Company’s presence in the cloud and in growth markets, its financial condition, results of operations and earnings, declaration of quarterly dividends, and other matters, are considered forward-looking statements or information under applicable securities laws. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially. Such factors include, but are not limited to: (i) the future performance, financial and otherwise, of OpenText; (ii) the ability of OpenText to bring new products to market and to increase sales; (iii) the strength of the Company's product development pipeline; (iv) the Company's growth and profitability prospects; (v) the estimated size and growth prospects of the EIM market; (vi) the Company's competitive position in the EIM market and its ability to take advantage of future opportunities in this market; (vii) the benefits of the Company's products to be realized by customers; (viii) the demand for the Company's products and the extent of deployment of the Company's products in the EIM marketplace; and (ix) the Company's financial condition and capital requirements. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (ii) the possibility that the Company may be unable to meet its future reporting requirements under the Securities Exchange Act of 1934, as amended, and the rules promulgated there under; (iii) the risks associated with bringing new products to market; (iv) fluctuations in currency exchange rates; (v) delays in the purchasing decisions of the Company's customers; (vi) the competition the Company faces in its industry and/or marketplace; (vii) the possibility of technical, logistical or planning issues in connection with the deployment of the Company's products or services; (viii) the continuous commitment of the Company's customers; and (ix) demand for the Company's products. For additional information with respect to risks and other factors which could occur, see the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of